Are Old iPhones a Gateway Drug?

1/24/2013 3:22PM

Sales of Apple's newest iPhone are not impressing analysts. But there's a good chance most of those people buying older iPhones will eventually upgrade to a new iPhone, MarketWatch's Quentin Fottrell reports on digits. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... all I Phones and can't wait for ... when the trial joins us now ... sucks when thanks for being here ... aam JY to ... nothing about it with export drugs but some I'm sure you'll explain this reference ... to the more provocative than stepping stone on a diet ... I agree but it's the it's the mother ... the mother ... you might move from one father to a slightly more ... exciting ... iMovie bodies lying on known I phone five would be in all my friends are for a full restaurant ... yet reacts will be an old one that would be what you say that that second lieutenant in the week at you hope to ... get to the center the ecosystem ... I'm says today in a Tim Cook said that the I phone for was selling ... a salesman stronger so the surprise some people ... but actually this people surprises so that less than ... the Eagles top of the ... phone to six point two ... million I Phones to date in the last quarter where the newer models ... so it shows the trends of ... the trend people are buying more ... an older model I found so people investors are clearly worried because they think oh it's not as much money ... because you get say that ... four hundred and fifty dollars ... because forty dollars from four ... um ... you agreed to icons go because six fifty three to get a contract it's free ... so ... come on the up and the short term it looks like well it's less money and ... in the hands of of the animals overtook in a warm and annuity business where did you know the companies to scanning and ... painted it periodic payments as you can even get the old by phone and it's it's less money but it is steady ... and in in some ways you would think that that would be less exciting for some of us to run ... right yes but there are other ... there is a silver lining to this over the city has three like silver linings ... ALM ... that seems like I'm and I was I spoke to this is a lot of people who are buying is an older I firms are ... likely to be new ... customers so awful ... so that on ... the rich and happy with the upgraded the retention rate for I phone is ... in December two thousand and twelve was eighty three percent is up ten percent of the word recession right what what the remains of people who are retired ... a whole lot of upgrades from one pocket to another ... so um ... that shows the second time in my mind I if I buy an old by phone ... that will not lightly at an oblong next down eighteen percent more likely accounted for and Thompson a sixty three percent of people when they buy awful that tend to stick with Apple ... and secondly ... aam ... nearly twenty percent of life in sales last quarter where people were switching from ... the likes of underweight sending them to queue jump year-on-year ... so it seems a given all of their wheeling and a lot of these ... new customers ... green image the photos so the short term yes it's less money for not informing the longer term ... um that is greater ... you get a loyal customer ... low-cost Mumbai's ... great stuff ... the names of the drugs without time anyway went to trial on MarketWatch read more on ... MarketWatch talk calm